Israel's aviation crisis: War and tech reshape air travel
- Paul Aage Hegvik
- Feb 16
- 4 min read
Updated: Mar 15
Since the outbreak of war in October 2023, Israel's aviation sector has faced unprecedented challenges.
Prior to the escalation of conflict in October 2023, several international airlines operated regular flights to Israel, primarily serving Tel Aviv's Ben Gurion Airport.
These included major U.S. carriers such as United Airlines, Delta Air Lines, and American Airlines, as well as European airlines like British Airways, KLM Royal Dutch Airlines, and Air France. Asian carriers, including Cathay Pacific and Air India, also maintained routes to Israel. Additionally, low-cost airlines such as Ryanair offered services to the region.
Widespread suspensions
The national carrier, El Al Israel Airlines, along with Arkia, were among the domestic airlines providing extensive connectivity.
The outbreak of hostilities led to widespread suspensions of flights by these international carriers due to safety concerns and travel advisories. For instance, United Airlines, which operated 28 weekly flights to Tel Aviv before the conflict, suspended operations in October 2023. Delta Air Lines and American Airlines also halted their services around the same time. European carriers like KLM and British Airways suspended flights, with KLM extending its suspension until the end of March 2025. Low-cost carrier Ryanair canceled flights through 2024 and removed Israel from its booking options until April 2025.
El Al continued operations
In contrast, El Al continued operations, albeit with limited capacity, leading to increased ticket prices and limited availability. This situation prompted initiatives like TechAir, a cooperative airline established by Israeli tech leaders in partnership with Arkia, aiming to restore affordable and flexible air travel options between Israel and the United States.
As of February 2025, while some airlines have announced plans to resume services, many have yet to reinstate flights to Israel, resulting in ongoing challenges for international travel to and from the region.
With foreign carriers suspending flights and heightened security risks affecting air travel, Israeli airlines were forced to adapt quickly. The crisis has led to a reshaping of the industry, with local airlines stepping up, new aviation initiatives emerging, and technological advancements playing a key role in recovery.
Israeli airlines before the war
Prior to the conflict, Israel had several active airlines serving domestic and international routes:
El Al Israel Airlines: The national carrier, renowned for its strict security measures and extensive global reach.
Arkia Israeli Airlines: A smaller airline operating domestic and select international routes.
Israir Airlines: Specializing in charter flights and scheduled services to Europe and local destinations.
Sun d'Or International Airlines: A subsidiary of El Al, offering seasonal and charter flights.
Impact on air travel
When war broke out, foreign airlines—including major international carriers—immediately halted flights to and from Israel, citing security risks. This led to a severe disruption in travel, leaving Israeli airlines as the only operators keeping the country connected to the world.
El Al became the backbone of Israeli aviation, increasing services and operating emergency repatriation flights. However, with fewer competitors in the market, ticket prices surged dramatically.
Arkia and Israir maintained limited domestic operations, particularly to Eilat, while struggling financially due to reduced demand and insurance challenges.
Sun d'Or largely ceased operations during the height of the crisis.
150% increase in profit
El Al has reported a significant financial upturn amid the crisis, with a 150% increase in profit, posting a net profit of $147 million in the second quarter of 2024, up from $59 million a year earlier. This growth is attributed to its near-monopoly status, as many foreign carriers canceled flights due to the ongoing conflict. Despite facing criticism for high fares, El Al has defended its pricing, citing increased demand and limited supply.
To modernize its fleet and expand capacity, El Al has secured a deal with Boeing for up to 31 737 MAX jets valued at $2.5 billion. This investment reflects the airline's strategy to enhance operational efficiency and meet the heightened demand resulting from reduced competition.
The rise of TechAir
With the aviation crisis worsening, Israel’s tech sector stepped in to find solutions. A new initiative, TechAir, launched in 2024 as a collaboration between Israeli tech entrepreneurs and Arkia. The goal was to create alternative air travel solutions, particularly connecting Israel with key destinations in the U.S. and Europe.
TechAir uses advanced AI-driven flight scheduling, dynamic pricing, and digital booking systems to optimize efficiency and reduce travel costs for Israelis and international visitors. This initiative reflects Israel’s broader trend of using technological innovation to tackle infrastructure challenges.
The current aviation landscape
As of February 2025, Israel's aviation industry remains in flux:
El Al has restored many of its pre-war routes but continues to face operational difficulties due to high insurance costs and fluctuating demand.
Arkia and Israir are gradually rebuilding their networks but remain financially strained.
Foreign carriers have resumed some services, but overall international connectivity remains below pre-war levels.
TechAir is gaining traction, offering Israelis more travel options and filling critical gaps left by the crisis.
Can Israel’s aviation sector fully recover?
Experts believe that while Israel's aviation industry will continue to rebuild, full recovery depends on geopolitical stability and further investment in technology-driven solutions. The emergence of TechAir and similar initiatives signals a promising shift toward resilience and innovation in air travel.
The high cost of flights and ongoing security concerns may keep international airlines cautious about returning to full operations.
As Israel navigates this turbulent period, the nation’s aviation industry stands as a testament to its adaptability—leveraging technology, resilience, and strategic planning to overcome the challenges of war and uncertainty.
